Benefits and costs?
- No need to EVER purchase an annuity or pay UK tax charge upon death.
- Leave ALL unused pension funds to your beneficiaries free of tax at source.
- Much greater investment freedom.
- Tax free lump sum, even if you have already taken 25% from your pension.
- Onshore / offshore funds, highest fixed deposit rates, total diversification.
- Take income from your pension in a much more tax efficient way.
- Take income and benefits in currency of your choice.
- Protection against possible future creditors. (Dependent on QROPS jurisdiction).
- Greater confidentiality.
The benefits of being in control of your pension fund are immense for those living abroad! Not only can you benefit from being able to invest into a more diversified range of asset classes, but you can also take tax free benefits if structured correctly. Remember it is YOUR pension fund & YOUR money as you have worked for it! There are also huge gains to be made in Inheritance Tax Planning (IHT). On an individual’s death, with the right planning the full value of your QROPS can be passed onto your loved ones and not straight into the Chancellor’s pockets.
If your pension is transferred to a QROPS in certain jurisdictions then you may, under certain circumstances, take a large portion of your pension’s value as a tax free lump sum. Some may then choose to hold this money in a high interest…
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Costs
In terms of costs as a percentage, the larger your fund the lower the charges will be. Typically your pension fund needs to be worth at least £200,000 to qualify for one of the better QROPS, although if you have other investable assets or cash deposits then we may be able to help with transfer values upwards of £50,000. One of our preferred QROPS schemes can be established for you, depending on your circumstances from around 1% of your pension fund value. On-going annual management charges are from 0.65% p.a. levied each year depending on the fund value and structure. For full details of the scheme best suited to your country of residence and requirements please download our QROPS report or contact us